Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
Franchisee: means a person with whom a franchisor has agreed or permitted, in writing or in practice, to purchase, sell, or offer for sale new powersport vehicles manufactured, produced, represented, or distributed by the franchisor. See Utah Code 13-35-102
Franchisor: means a person who has, in writing or in practice, agreed with or permits a franchisee to purchase, sell, or offer for sale new powersport vehicles manufactured, produced, represented, or distributed by the franchisor, and includes:
(i)
the manufacturer or distributor of the new powersport vehicles;
(ii)
an intermediate distributor;
(iii)
an agent, officer, or field or area representative of the franchisor; and
(iv)
a person who is affiliated with a manufacturer or a representative or who directly or indirectly through an intermediary is controlled by, or is under common control with the manufacturer. See Utah Code 13-35-102
Line-make: means the powersport vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor, or manufacturer of the powersport vehicle. See Utah Code 13-35-102
Except as provided in Subsection (1)(b), if a franchise is terminated or not continued by the franchisor or franchisee, the franchisor shall pay the franchisee:
(i)
the franchisee’s cost of new, undamaged, unsold, and unregistered powersport vehicles in the franchisee’s inventory acquired from the franchisor or another franchisee of the same line-make and invoiced during the 30-month period immediately before the franchise is terminated or not continued;
(ii)
any charges made by the franchisor for distribution, delivery, or taxes;
(iii)
the franchisee’s cost of any accessories added on a vehicle;
(iv)
the cost of new, undamaged, and unsold supplies, parts, and accessories as set forth in the franchisor’s catalog at the time of termination or noncontinuation less all allowances paid or credited to the franchisee by the franchisor;
(v)
except as provided in Subsection (1)(c), the fair market value, but not less than the franchisee’s depreciated acquisition cost, of each undamaged sign owned by the franchisee that bears a common name, trade name, or trademark of the franchisor if acquisition of the sign was recommended or required by the franchisor;
(vi)
the fair market value, but not less than the franchisee’s depreciated acquisition cost, of all special tools, equipment, and furnishings acquired from the franchisor or sources approved by the franchisor that were recommended or required by the franchisor and are in good and usable condition; and
(vii)
the cost of transporting, handling, packing, and loading powersport vehicles, supplies, parts, accessories, signs, special tools, equipment, and furnishings.
(b)
The franchisor may deduct the sum of all allowances paid or credited to the franchisee by the franchisor from the amount owed under Subsection (1)(a).
(c)
If a franchisee has a sign with multiple manufacturers listed, the franchisor shall pay only for its pro rata portion of the sign described in Subsection (1)(a)(v).
(2)
The franchisor shall pay the franchisee the amounts specified in Subsection (1) within 90 days after the tender of the property to the franchisor if the franchisee has:
(a)
clear title to the property; or
(b)
the manufacturer’s statement of origin.
(3)
If repurchased inventory and equipment are subject to a security interest, the franchisor may make payment jointly to the franchisee and to the holder of the security interest.
